Formula
ROAS = Ad Revenue ÷ Ad Spend · Break-Even ROAS = 1 ÷ Margin
FAQ
What's a good ROAS?
It depends entirely on margin. A 60% margin business breaks even at 1.67×; a 20% margin business needs 5×. Compare to your own break-even ROAS, not generic benchmarks.
Does ROAS include all costs?
No — ROAS is revenue ÷ ad spend. It ignores product costs, which is why break-even ROAS and ad profit matter more for decisions.